AURIFEROUS START FOR ASSET MANAGER

AURIFEROUS START FOR ASSET MANAGER

AN asset management company has tapped what it believes to be Australasia’s first fully allocated gold backed exchange-traded fund.

The Australian Midas Fund, which forecasts to have $450 million under management in its first year, will be managed by the Midas Management Group to provide an investment alternative for investors interested in holding physical gold bullion.

Chairman Anthony Fitzgerald says 97 per cent of the company’s net asset value will be held in bullion bars, owned by investors but stored offshore in the custody of an independent Swiss asset management group.

“Managed by Midas Management Group, The Australian Midas Fund will pioneer the Australian financial market with a product that not only offers the traditional hedging characteristics of gold but also additional protection against inflation, deflation and other manipulations associated with paper currencies and importantly the security of having the unique ability to redeem in physical gold bullion,” says Fitzgerald.

“By establishing a legitimate fund that actually holds gold bullion, rather than paper based transactions, our fund will capture a large percentage of a market that is seeking safe and solid returns and in turn is set to revolutionise the Australasian ETF industry.

“The Australian Midas Fund will be selling 12 million transferable, redeemable preference shares in its initial offering, with subsequent offerings to Asia, Europe and America following shortly after.”

The price of gold has increased from US$255 in 2001 to around US$1330 an ounce.

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